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If a company decides to increase its ratio of total debt / total assets from 30% to 50% as a means of increasing its return on equity (ROE), and it is able to maintain a 4.5% return on assets(ROA), what will be the new return on equity (ROE) after it has increased its debt level?

Please give the solution with full details (formula)!

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Financial Management, Finance

Category:- Financial Management
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